How is the cost of Plan E Elective COLA calculated?
The cost to purchase COLA is based on the estimated cost of the future Elective COLA benefit; therefore, you must pay the full actuarial cost of your estimated future Plan E Elective COLA benefit. At the time of purchase, LACERA will project the cost of your Elective COLA based on: • Your current pensionable earnings • Your current age • Years of service • Spouse or domestic partner?s age (if applicable) • Actuarial assumptions for: • Increases to your pensionable earnings • Retirement at age 65 • Life expectancy for member and spouse or domestic partner • Any years of County service covered by Social Security • Unmodified Retirement Option At retirement, LACERA will use your actual retirement factors to recalculate the cost of your Elective COLA purchase. Any difference between the final calculation and the initial projection will determine whether you owe a balance to LACERA or LACERA owes you a partial refund.
